Mortgage Rate Rises

flea.rider said:
because it's not everyone .... ???
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Not everyone needed the money though.

Those without mortgages won't be effected by interest rate rises either (or beneficially impacted if they are savers).

So the precedent is to support those people who are impacted. That's what happened during COVID too, it wasn't everyone who was impacted then either, so those impacted got support.
 
neocon said:
I don't want to bail out people that have over borrowed to buy a huge expensive house. How do you target those in need?
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I think this is right, but at the rate we're seeing rate rises, a lot of people will be in genuine need because of this, people who otherwise should have been comfortable.
 
Ever since furlough (which I agreed with) and then further bolstered by the energy support, everyone now seems to think that they should be bailed out/supported for every financial impactful situation.

The public purse cannot afford it. If we are to bring inflation down then we need people to stop spending not giving them more free cash which just keep inflation up.

If mortgage support happens, what will we be supporting next?
 
Jono8 said:
But house prices are so absurd, most have no choice but to go to the limit.
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dLockers said:
Almost daft not to unless you think you've reached peak earnings/you are going to "plod" for the remainder of your life.
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Maybe I am the odd one. When buying a house at that point in time (2016) my wife was self employed so we set things up so that if she had no income we'd just about scrape through. Luckily she has remained in employment since so in hindsight we could have probably bought a bigger house or a house in a different, slightly more rural area. I was late to the party buying a house so I had no life / luxuries for several years and saved up a deposit whilst my Mrs was in Borneo doing her PhD. I needed to payback within 25 years too as I'd be 63 when the mortgage finished doing that. I nowhere near took the mortgage amount they offered me, it seemed a ludicrous amount as it was based on my wage plus OT earnings but I always knew the OT might not be there. It did allow us to get a mortgage with no real issues though.

I maybe just play things too safe?
 
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flea.rider said:
because it's not everyone .... ???
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Due to the longest con that rich people.have played on society (IE banks and mortgages), a mortgage is now a necessity to own a roof over your head.

Also, this will drive rents up too, so it virtually is everyone apart from either those with social.hpusing or those who own their house out right.
 
Richie said:
Ever since furlough (which I agreed with) and then further bolstered by the energy support, everyone now seems to think that they should be bailed out/supported for every financial impactful situation.

The public purse cannot afford it. If we are to bring inflation down then we need people to stop spending not giving them more free cash which just keep inflation up.

If mortgage support happens, what will we be supporting next?
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It's a fair point, so incentivise people to actually spend less, rather than forcing people into mortgage/rent poverty.

For example increase VAT on non essential goods. If you buy them it costs you more, so you could choose not to spend that money instead and save it.
 
Richie said:
Ever since furlough (which I agreed with) and then further bolstered by the energy support, everyone now seems to think that they should be bailed out/supported for every financial impactful situation.

The public purse cannot afford it. If we are to bring inflation down then we need people to stop spending not giving them more free cash which just keep inflation up.

If mortgage support happens, what will we be supporting next?
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Could just eat tax the rich.
 
danlightbulb said:
It's really dumb how people in government are managing to ignore this so easily. We all got £66 a month to help with energy bills a few months back because they'd tripled from £1k to £3k. Mortgages and rents increases could be up by four times this amount or more.

I cannot fathom why one warrants support yet the other does not.
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One is a vote winner, and actually cost that much e.g £66 paid 3 times plus the cap. Energy increase was also very temporary, and not closer to reasonable. Everyone in the country was worrying about £1k increase on energy per year, while I'm seeing my mortgage going to be £600 higher per month for 2/3 years.

Mortgages however arr stupidly expensive for the government to help with. I'd like, I get why we can't get help directly with money give to us.

The boe has pretty much said we want people to have less money in a super quick amount of time, so quickly that we can't react fast enough. Give people help for the damage caused by these increases serves no purpose. Might as well just leave it as it was in that case
 
danlightbulb said:
I think this is right, but at the rate we're seeing rate rises, a lot of people will be in genuine need because of this, people who otherwise should have been comfortable.
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There probably loads of greedy people where I live who will have borrowed astronomical amounts of money. Like do you want to bail out people that borrowed 500k?
 
neocon said:
There probably loads of greedy people where I live who will have borrowed astronomical amounts of money. Like do you want to bail out people that borrowed 500k?
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£500k is less than what it costs to buy a 3-bed semi in large parts of the south (and thats not in London either). You've got to re-adjust your expectations on what stuff actually costs in the south / south-east.

FTB are now typically in their 30s with 2 kids. A 3 bed semi is their minimum. It's a £500k mortgage or nothing for them
 
neocon said:
There probably loads of greedy people where I live who will have borrowed astronomical amounts of money. Like do you want to bail out people that borrowed 500k?
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I sold my 1.5 bed 600sqft cottage for £525k to an NHS midwife lol. Look outside of your own postcode for once.
 
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Richie said:
Ever since furlough (which I agreed with) and then further bolstered by the energy support, everyone now seems to think that they should be bailed out/supported for every financial impactful situation.

The public purse cannot afford it. If we are to bring inflation down then we need people to stop spending not giving them more free cash which just keep inflation up.

If mortgage support happens, what will we be supporting next?
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All that furlough money they printed got hoovered up(directly or indirectly) by the wealthiest, who are not getting taxed appropriately so the cash never completing its journey back into the public coffers.

Any future schemes need to be better thought so it's not just another free game of hungry hippos with the balance going on the nation's credit card
 
ci_newman said:
£500k is less than what it costs to buy a 3-bed semi in large parts of the south (and thats not in London either). You've got to re-adjust your expectations on what stuff actually costs in the south / south-east.

FTB are now typically in their 30s with 2 kids. A 3 bed semi is their minimum. It's a £500k mortgage or nothing for them
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Or a 2 bed flat with 1 kid. I shouldn't have to bail out a family who forgot to wear protection.
 
It'll have to be one-off like a winter payment or something. Work out the average monthly paid by everyone (including fully paid for houses I guess to lower payment and involve all homeowners) and give 30% or something.

Never happening, what about renters?
 
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